Description
NSE modifies allocation procedures for early pay-in of funds, implementing FIFO basis and new file upload processes effective August 11, 2025.
Summary
NSE Clearing Limited has modified the allocation procedures for early pay-in of funds (EPIF) at client and security levels. The changes implement a First-in, First-Out (FIFO) basis for allocation requests and introduce new file upload procedures for incremental allocation requests.
Key Points
- Allocation requests processed on First-in, First-Out (FIFO) basis
- Once allocated, assignments remain unchanged until modification request received
- Incremental file upload facility allows partial updates instead of full resubmission
- Fresh allocation requests processed without affecting existing allocations
- Modification requests treated as fresh allocation requests
- Daily reports provided to members/custodians with allocation details
Regulatory Changes
- Modified Point d, Item 11.20.1.2, Part B of NCL Consolidated Circular Ref. No: 011/2024
- New file upload procedures for allocation requests
- FIFO-based allocation priority system implementation
- Enhanced reporting mechanism for daily allocation status
Compliance Requirements
- Members/Custodians must submit allocation requests through NMASS member interface
- File uploads must follow specific nomenclature:
_CEPFYYYYMMDD.csv.gz - Separate EPI funds request required to clearing bank for margin benefit
- Daily review of allocation reports recommended
Important Dates
- August 11, 2025: Effective date for all circular provisions
Impact Assessment
- Streamlines allocation process with FIFO system ensuring fair priority
- Reduces administrative burden through incremental file upload facility
- Maintains existing margin exemption benefits for early pay-in funds
- Enhanced transparency through daily reporting mechanism
- No change to underlying margin benefit calculation methodology
Impact Justification
Operational change affecting margin benefits and fund allocation procedures for members and custodians